Han Solo and Chewbacca invested Rs.62500 and Rs. 42500 respectively in a business and agree that 30% of the profit should be divided equally between them and the remaining profit is to be treated as interest on capital. One partner gets 150 more than the other. Find the total profit made in the business?
Question
Han Solo and Chewbacca invested Rs.62500 and Rs. 42500 respectively in a business and agree that 30% of the profit should be divided equally between them and the remaining profit is to be treated as interest on capital. One partner gets 150 more than the other. Find the total profit made in the business?
Solution
Step 1: Let's denote the total profit as P. According to the problem, 30% of the profit is divided equally between Han Solo and Chewbacca. So, each gets 0.3P/2 = 0.15P.
Step 2: The remaining 70% of the profit is treated as interest on capital. So, the amount that is treated as interest on capital is 0.7P.
Step 3: The ratio of their investments is 62500:42500, which simplifies to 25:17.
Step 4: Therefore, the remaining profit (0.7P) is divided in the ratio 25:17. Let's denote Han Solo's share as H and Chewbacca's share as C. So, H = 25/42 * 0.7P and C = 17/42 * 0.7P.
Step 5: According to the problem, one partner gets Rs. 150 more than the other. This means the total amount Han Solo gets (0.15P + H) is Rs. 150 more than the total amount Chewbacca gets (0.15P + C). So, we can write the equation as 0.15P + 25/42 * 0.7P = 0.15P + 17/42 * 0.7P + 150.
Step 6: Solving this equation, we get P = Rs. 10500. So, the total profit made in the business is Rs. 10500.
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